> 2018 First Quarter Results

Media Capital presents its Q1 2018 results, which reinforces its leadership among the Portuguese media in terms of both market share and profitability

In the first three months of the year, Media Capital reinforced its audiences and profitability, strengthening its position in the competitive Portuguese media sector.

Pre-income tax profits improved 31% YoY, due to the growth in advertising, EBITDA and financial results.

Advertising revenues jumped 4%, corresponding to the highest YoY growth rate since the first quarter of 2016.

Consolidated EBITDA reached € 5.2 million, 4% above the comparable period.

Financial results improved 10% YoY, due to the lower average volume of net debt, as well as lower all-in interest rate.

The TV segment had an EBITDA of € 3.4 million. TVI kept the leadership in TV audience share for the 140th straight month, achieving an average of 21.1% and 24.4% in all day and prime time, respectively. The gap over the second most watched channel was 3.9pp in all day and 3.3pp in prime time. TVI’s leadership in audiences was also maintained when analyzing by groups of channels (TVI, TVI24, TVI Ficção and TVI Reality, in the case of TVI), with 23.9% in all day and 26.6% in prime time, i.e., respectively 3.3pp and 2.5pp above the second most watched group of channels, although TVI has a lower number of channels.

The Radio segment continued to improve its EBITDA, which in this quarter rose by 40% YoY to € 1.1 million, with a margin of 27.7%. Media Capital’s radios continued to increase their audience levels, reaching 37.3% in the first reading of 2018 – 1.4pp above the main competitor and 3.2pp higher than its own reading of Q1 2017. Such performance benefited from the success of Radio Comercial’s clear leadership (24.9%, clearly above the 22.7% attained a year ago), as well as to the steady climb of M80’s, which reinforced its ranking as the third most listened

In the Digital business there was a strong improvement in audiences and revenues. In the comparison against the comparable period of 2017, the aggregate websites and apps rose by 18% in sessions and by 26% in what regards video, contributing for the 9% increase in advertising revenues.

It is worth highlighting the cash flow generation, with an improvement in operating cash flow from € 2.3 million to € 6.0 million, whereas net debt came down € 5.2 million and € 9.7 million when comparing against YE 2017 and March 2017, respectively. Hence, net debt stood at € 90.1 million at the end of March, which is the lowest March figure since 2007.

Queluz de Baixo, 12th April 2018